Domestic software companies currently have 1.6 crore employees
Mumbai: Automation has gained momentum in the technology industry. This is as good for us as it is bad, because our country is moving forward because of this.
Automation allows some tasks to be completed on time and faster. Which is to your advantage. But one of the downsides of this automation is that it will lose a lot of jobs. Because now all these automatic machines have come to replace people. These machines just need to be set up, then they do their work by themselves. They also don’t have to pay salaries, which is why many companies are turning to automation.
A report claims that there are currently 1.6 crore employees working in domestic software companies. But some companies have decided to reduce 3 million of them. Which will save 100 100 billion. Which is a really big amount.
According to Nasscom, about 1.6 crore people work in the domestic IT sector, of which about 90 lakh work in low-skilled and BPOs. Of these 90 lakh low-skilled services and BPOs, 30 per cent or about 30 lakh people could lose their jobs by 2022. Because robotic automation and RPA are going to affect this.
According to the report, many companies like TCS, Infosys, Wipro, HCL, Tech Mahindra and Cognizant are considering removing 3 million low-skilled people from the company by 2022 due to RPA up-skilling. The report says that the annual cost of India-based resources is 25 25,000 and the annual cost of US resources is 50 50,000. So if these employees are fired, companies can save about 100 100 billion on salaries and corporate-related costs.
The impact of automation on American jobs as well
Approximately 7 lakh people from domestic companies will be replaced with RPA savings only. The rest will be reduced due to technology upgrades and upskilling. The worst of these RPAs will be in the US. According to a Bank of America report, one million jobs in the United States could be lost.
The biggest threat to India and China
Skill disruption will have the greatest impact on India and China. The Asian, Persian Gulf and Japan are less at risk.